CEBA talks 2020-2023
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The Influence of News, Expert and Public Opinion on Painting Prices: An Empirical Analysis

Authors: Taisia Pimenova, Valeria Kolycheva, Alexander Semenov, Dmitry Grigoriev

Abstract: Online reviews have proven to be essential price determinants, complementing many intrinsic characteristics of goods. In the art market, this type of expression brings the interaction between artists and art connoisseurs to a new level. However, widely varying expertise and influence power among participants require detailed approaches within each group. In this work we investigate the impact of experts and public sentiment on the price of paintings using a hedonic regression model with artists' fixed effects. Since buying paintings for investment is a common phenomenon in the secondary art market, we further analyse the interaction between reviews sentiment and buyers' investment intentions. We utilize a dataset of 18.100 sold paintings and find that negative opinion from all sources and positive public opinion significantly affect the price in the direction of their valence. Moderation analysis confirms increased sensitivity to negative experts' opinion and news publications. Our findings contribute to empirical research on price determinants of artworks and examining online reviews from different sources.